Inflationary concerns and Anthropic disappointment weigh on wall street
The expectation of rising interest rates due to higher consumer prices in October, as well as a lower valuation of the AI company Anthropic in its planned initial public offering, led to a moderate correction on US stock markets on Tuesday.
The Dow Jones Industrial Average lost 0.3 percent to 52,242 points.
US consumer prices rose unexpectedly strongly in October, reinforcing fears of further tightening of monetary policy. Economist Thomas Gitzel of VP Bank predicts that the US Federal Reserve will raise the key interest rate by 0.25 percentage points in December. However, there is speculation that the Fed may even increase this value to 0.50 percentage points, fueled by statements from Fed Governor Christopher Waller.
The Nasdaq 100 gained slightly, 0.1 percent to 27,950 points, in early trading.
The S&P 500 Index fell by 0.2 percent to 7,537 points.
The planned initial public offering of chatbot provider Anthropic, which is aiming for a total valuation of up to one trillion US dollars, is the focus of investors. However, this valuation is significantly below previously expected values. “The disillusionment in the field of artificial intelligence continues,” commented one trader.
AMD, Broadcom and Nvidia plan investments in Anthropic totaling up to 26 billion euros. While AMD and Broadcom gained in value, Nvidia came under pressure again. The stock had already given up more than 4 percent the previous day.
Furthermore, an investigation is being conducted against Nvidia CEO Jensen Huang for possible espionage activities, as he allegedly had a relationship with a woman who worked for the Chinese intelligence service. Beijing denied these allegations, and the FBI has opened an investigation.
The stock of Groupon recorded a loss of more than 20 percent after the company lowered its annual revenue forecast.
In contrast, the shares of Take-Two Interactive Software rose by almost 6 percent after the video game developer gave a conservative outlook. Market participants are eagerly awaiting the release of “Grand Theft Auto VI,” which is expected on November 19.
The air conditioning manufacturer Aaon reported a record quarter and raised its annual forecast, leading to a price increase of 23 percent. The company supplies cooling solutions for data centers, among other things.
Contains material from dpa-AFX
Source
“Wall Street‑Update: Inflation bremst die Euphorie ‑ Enttäuschung über Anthropic”
Read the original report (in German) ↗This story was written with the help of AI from the original report credited above and published after automatic checks. No person read it before publication. Errors reported to us are corrected and listed on our corrections page. Read our editorial policy · Report an error · Corrections
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